Nucor earnings beat by $0.08, revenue fell short of estimates
DAYTON, Ohio - Rex American Resources (NASDAQ:AREC) Corporation (NYSE:REX) reported fourth-quarter earnings and revenue that surpassed analyst expectations, sending its shares soaring 6.2% in early trading.
The ethanol producer posted adjusted earnings per share of $0.63 for the quarter, beating the analyst consensus of $0.27 by $0.36. Revenue came in at $158.23 million, topping estimates of $151.54 million.
Despite the earnings beat, Rex American’s fourth-quarter net income fell to $11.1 million, or $0.63 per diluted share, compared to $20.6 million, or $1.16 per share, in the same period last year. The company attributed the decline to lower selling prices for ethanol and co-products, partially offset by decreased corn and natural gas prices and increased ethanol production levels.
Revenue for the quarter decreased to $158.2 million from $187.6 million YoY, primarily due to reduced pricing for ethanol and co-products. Gross profit margin for the full fiscal year 2024 improved to 14% from 12% in the previous year.
"Our continued financial success is due to our incredible team that lives and breathes the ethanol market every day," said Zafar Rizvi, Rex American’s Chief Executive Officer. "This is especially important in a weaker crush spread environment like we saw during the fourth quarter, and which has continued into first quarter 2025."
The company reported consolidated ethanol sales volumes of 74.6 million gallons for the fourth quarter and 289.7 million gallons for the full fiscal year 2024.
Rex American’s board of directors authorized an additional 1.5 million share buyback program, adding to the 222,510 shares remaining under the existing authorization.
As of January 31, 2025, the company had $359.1 million in cash, cash equivalents, and short-term investments, with no bank debt.
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